Opportunity Zones were originally devised by the Economic Innovation Group, a non-profit focused on empowering entrepreneurs and investors to “forge a more dynamic economy throughout America.” The program was meant to support existing businesses, grow new businesses, and finance needed real estate projects in low-income communities impacted by the Great Recession. In 2018, Treasury Secretary Steve Mnuchin estimated that Opportunity Zones could attract as much as $100 billion in private capital. And although the investment climate has changed dramatically since then, largely in part because of COVID-19, at least $10 billion has been invested in Opportunity Zones, according to the Urban Land Institute . And of the 186 investments that the Economic Innovation Group has identified, about 145 are in real estate. Understandably, the coronavirus pandemic slowed both Opportunity Zone real estate improvements and Qualified Opportunity Fund (QOF) investments. However, with the stock market recently reaching all-time highs , QOFs are back in the headlines. But why? How does the stock market impact QOFs?
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